TIAA Measures Steady Retirement Satisfaction

A new study from TIAA reveals “nearly universal satisfaction in retirement,” at 93%, among its retired plan
participant client base.

It is to be expected that those with access to workplace retirement accounts and
long-term relationships with one or more financial services providers are likelier
to feel well-prepared, and thus happier, in retirement. But TIAA says the 93%
figure is impressive even in this context, especially given the changes that
have taken place in the U.S. retirement system over the past 30 years, hoisting
more responsibility for saving and investing onto the back of individuals.

“Satisfaction levels are virtually unchanged from when TIAA
(then TIAA-CREF) conducted its landmark Voices of Experience
study,” explains Roger Ferguson, Jr., president and CEO at TIAA. Like the
original 1982 study, in which more than 1,500 TIAA annuitants answered
questions about a variety of retirement issues, the 2016 follow-up survey of more than 1,500 retired plan participants measures the evolving attitudes retirees hold pertaining to life after work, “providing insights into all facets of retired
life and the steps taken to prepare.”

“It’s remarkable that even with all the changes our country
has experienced in the past 30 years—the increase in health care costs, the predominance of
technology, the overwhelming amount of often-conflicting information—nearly all
of the retirees we surveyed feel satisfied with their life in retirement,” Ferguson
says. “It’s a vastly different world today than 1982, but our findings show
that a happy, fulfilling retirement is still attainable.”

In fact, the “intensity of satisfaction” among TIAA retirees
has actually increased, the firm says, with 65% of today’s retirees saying they
are very satisfied with retirement, up from 51% in 1982.

NEXT: Earlier
retirements

TIAA’s 2016
survey results reflect another trend first identified in 1982, increasingly
early retirements. In 1982, 39% of TIAA plan participants retired before age
65. Among the retirees surveyed in 2016, more than half (54%) retired before
age 65, and many individuals are retiring ahead of their own schedule, as 71% of today’s retirees say
they had expected to work until age 65 or older, but only 47% did.

Survey respondents also are more optimistic than pessimistic
toward the prospect of retiring. Three-quarters of today’s retirees said they
had looked forward to retirement. “This could be due in part to the fact that
the majority are retiring on their own terms,” TIAA explains. In the 2016 data,
76% of those surveyed report that they retired by choice, an increase from 67% in
1982.

“What’s especially interesting about the 2016 Voices of
Experience study is that it contradicts today’s common narrative about
retirement and shows that many more retirees approached retirement with
excitement and optimism than apprehension,” Ferguson explains. “The study
reinforces what we have known for years—that our participants can benefit from
outcome-oriented retirement plans that help them feel secure about their
retirement lifestyle.”

In terms of what makes retirement fulfilling, the same
truths appear to hold in 2016 as in the early 1980s: “Staying busy and engaged
during retirement is key to these feelings of contentment.” Seventy-six percent
of today’s retirees who are engaged in 10 or more activities report being very
satisfied with their retirement, while only 52% of those who are engaged in only
one or a handful of regular activities say the same.

“Seventy-four percent are using their time in retirement to
connect with and spend time with family, and 64% socialize with friends on a
regular basis,” the survey finds. “More than half engage in other hobbies like
gardening or home improvement (56%) and/or travel (51%).”

Concluding the report, TIAA highlights once again that getting
an early start to retirement planning can allow retirees to “choose their own
retirement adventure” and enjoy their retirement lifestyle much more. “Among
today’s retirees, those who began retirement planning before age 30 are more
likely to retire before age 60. Not surprisingly, the majority (75%) of these
early planners say they are very satisfied with their retirement.”

Full results of the TIAA Voices of Experience survey are
reported here.